First off some leftover news from last night. Atlas Pipeline Partners(APL) raises its distribution buy 1 cent. Also distribution news from Atlas Holdings (AHD) as it announces a full quarter distribution...and last months ipo Atlas Resource (ATN) announces a pro-rated distribution of 6 cents...which would be 42 cents for a full quarter. Note that it makes this one priced to yield a very generous 7.3% while APL is priced to yield 6.8%. Atlas Holdings might have some upside to it although i like the prospects for all three.
In upgrades and downgrades this morning Valero GP (VEH)is downgraded to hold from buy at Wachovia. Both Valero LP(VLI) and Valero GP have been solid performers lately so this could be a buying opportunity here for VEH. Buy zones should be near the moving averages as shown but since we're in a bull move corrections will be fast and furious.
Linn Energy goes ex-distribution this morning so this could be one of those fast correction opportunities. Same applies here...For a trade i'm going to lay a buy order 2-3 points below yesterday's close of 33.99 and pray. Sometimes it works and sometimes it doesn't. BTW Linn is priced to yield 6.5% at 35 bucks based on next quarters $2.28 annual.
Growers yield in the 5-6% range so 35 to me looks like fair value for this one. Thats not to say it can't go higher longer term but in terms of the freebie that the market gave us when the stock was in the 20s....its no longer as clear cut. I still would buy any pullbacks to 30-31.50 area.
The MLP index did a bullish reversal yesterday and closed at another new all time high. We're up 7 points in the last 3 days and more upside is likely today.
I have been predicting 300 on this upleg and i'm still sticking with that upside target. When we get there i'll review to see if we have more to go. The energy complex is a few pennies higher. Natural gas is down 12 cents as it is still correcting from its big move.
joseph cioffi's Source Page - Associated Content
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